OptionsXpress Review and Promo Code

by Investing School on April 20, 2009

Investors may not be familiar with OptionsXpress and/or its promotional code but the online broker is very popular in the trading community. As a winner of numerous awards, OptionsXpress is a great online broker that must be looked at if you are interested in options trading. This review takes a look at why.

Options Trading with OptionsXpress

As its name suggests, OptionsXpress’core competency is with options trading. With tools like its option Pricer and Xspreads, it’s very easy to keep track of option market to execute your trades correctly.

In addition, the online broker also has the most comprehensive options education available for its clients that I have seen. From the very basics to advanced topics, OptionsXpress has very easy to follow videos that guide and teach you.

No Hidden Fees with OptionsXpress

Commissions with OptionsXpress

At first glance, the commission seemed high but OptionsXpress’ commissions for options is actually much lower. The actual prices depend on how many contracts you trade but for anything that is more than 10 contracts, it’s much, much cheaper going with OptionsXpress.

Trade Futures and Others with The Online Broker

With the name, you’d think that OptionsXpress only offers an options trading platform but it also lets you trade stocks, bonds, funds, and others. It is one of the only place I know that you can actually trade futures using the same account and it’s only $2.99 per contract.

Xpress Router

OptionsXpress also prides themselves in its routing technology, and claims that they are able to execute your orders more efficiently, meaning more quickly, and at better prices. Many traders I’ve spoke with agree, and it would seem like this alone will save you thousands, if not tens of thousands of dollars as you make investments and trades.

Why You Might Want to Open an OptionsXpress Account

I opened an account for a cheaper way to trade options and to learn more advanced topics that the free education provide. By looking at the website, they also seem to offer free webinars, free trading tools, free advanced research and a personal coaching program so once I’m done with the free educational videos, I will look further into that as well. With very low commissions and no inactivity and maintenance fees, it makes sense for me to keep the account open and trade options when there are opportunities show up.

The account is free and opening process as quickly as 5 minutes, why not?

Beware OptionsXpress margin calls. You get no notice. They just sell your positions out. It really stings to wake up and see your account decimated by their margin dept. while you were sleeping. I could have put in more $ or sold some things and not others, but I wasn’t given a choice. I have accounts with other firms and haven’t had this problem. I transferred out what’s left of the balance a few days later.

I have been trying for several months to open an account with Options Express. This journey started with completing an online application. For identification I responded to all the out-of-the-picket questions. Then the clock started ticking.

A couple of weeks later I attempted to deposit funds into the new account. One problem, no account number. Status showed pending. Waiting a week I contacted Options Express and was advised account would be approved “shortly”.

Several weeks later, still pending. Once again I contacted Options Express and was advised I would need to copy and fax my life to them. Advised them I currently had 3 other account with Schwab. Advised then would look into it.

Several more weeks pass and still in a pending status.

Deciding a direct approach was better; I stopped in my local Schwab branch and explained the situations. The desk jockey was perplexed and at a total loss as to what was required to fix the situation. It appears when Schwab acquired Options Express they failed to advise or train their local support staff.

An hour later, after showing no indication of leaving until resolved, progress was made. My ID’s was faxed to the “proper” people and I was advised my account would be opened.

Was it? NO! I received an email after I had left saying the fax received from a Charles Schwab employee from a Charles Schwas fax machine could not be used. I would need to fax a copy myself. You have to love a challenge.

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